Point and Figure Chart Patterns

Support levels are price
levels at which large numbers of buyers are expected to enter the market.
They are easily identified on Point and Figure charts by 2 or more columns
of O's bottoming out at the same level.

When you encounter penetration of a support or resistance
level, examine the Point and Figure chart carefully for supporting evidence. The following
Point and Figure pattern of rising columns of O's gives further confirmation of the breakout.

The next Point and Figure pattern shows a strong support base for the breakout —
still a bullish signal.

But the next Point and Figure pattern hints of a weak breakout that may result in a bull trap.

The same Point and Figure patterns can be identified with support level penetrations.
Is the following penetration of the support level likely to hold?

Rising Point and Figure columns of X's signal weakness - be on the alert for a
bear trap.

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